Gov. Walker reveals details of Chinese gas pipeline deal

Gov. Bill Walker on Tuesday released the details of a multibillion-dollar agreement signed between Alaska and China earlier this month and promised reporters at a press conference that better things will come in 2018.

“It really will open up Alaska, perhaps like we’ve never seen before,” Walker said of the state’s new ties to China, and suggested that the state could also benefit from Chinese tourism and Chinese demand for minerals.

In a gala ceremony Nov. 9, Walker signed a “joint development agreement” for the trans-Alaska gas pipeline project known as AKLNG. The agreement was signed with China’s state-owned bank, its state-owned petroleum company, and the Chinese equivalent of the Alaska Permanent Fund, in front of Chinese President Xi Jinping and U.S. President Donald Trump.

The Empire requested the text of the agreement that day, and the governor released it Tuesday, slightly less than two weeks later.

“There were no surprises in the agreement. It’s an agreement to keep working and see if this thing makes sense,” said Larry Persily, a former federal gas pipeline coordinator for Alaska and a former deputy commissioner of revenue.

According to the document, the Chinese or the state can withdraw from the arrangement at any time, without penalty. If that doesn’t happen, the two sides will work toward an agreement in which China will get 75 percent of the gas from the pipeline in exchange for financing its construction and an opportunity to buy a portion of the project.

“They would be a minority investor, not a controlling investor,” said Keith Meyer, president of the Alaska Gasline Development Corporation.

In response to a separate question, he said Chinese corporations might manufacture pipeline components or modules of the complicated gas plants at either end of the line, but they likely would not be involved in construction of the pipeline.

Meyer said the next few months will be spent in intense conversation and travel between China and Alaska as negotiations progress.

“With respect to this deal, there’s going to be a lot of interface between all three of the entities mentioned here and ourselves,” he said.

In Tuesday’s press conference, Meyer said he expects regulatory permission to come quickly.

Persily said that’s not likely. The Federal Energy Regulatory Commission has not even published a schedule for making a decision on approval, let alone a decision itself.

“To talk about making an investment decision in early 2019 and starting work is probably overoptimistic,” Persily said by phone from the Kenai.

He also pointed out that the state hasn’t even gotten oil and gas producers onboard with the idea of selling gas to China.

The agreement expires at the end of 2018, not long after next year’s general election.

In response to a question from the Empire, Walker said the agreement’s timeline was “absolutely not” determined by the election, in which Walker will appear on the ballot.

Walker said he was not involved in negotiating the timeline and saw it only when he arrived in Washington, D.C. before traveling to Beijing.

 

 

DV.load(“https://www.documentcloud.org/documents/4255806-01-Signed-JDA-SOA-AGDC-Sinopec-CIC-BOC.js”, {
responsive: true,
height: 700,
container: “#DV-viewer-4255806-01-Signed-JDA-SOA-AGDC-Sinopec-CIC-BOC”
});

01 Signed JDA SOA AGDC Sinopec CIC BOC (PDF)

01 Signed JDA SOA AGDC Sinopec CIC BOC (Text)

 

 


 

• Contact reporter James Brooks at james.k.brooks@juneauempire.com or call 523-2258.

 


 

More in News

The Norwegian Cruise Line’s Norwegian Encore docks in Juneau in October, 2022. (Clarise Larson / Juneau Empire File)
Ships in Port for t​​he Week of Sept. 23

Here’s what to expect this week.

This is a photo taken at the Mendenhall Glacier Visitor Center in July. (Clarise Larson / Juneau Empire File)
Forest Service, Tlingit and Haida to co-steward Mendenhall Glacier Recreation Area

Tribe dedicated to “protection of the historic and cultural resources in the area,” president says.

Retiring Deputy Chief David Campbell, left, and City and Borough of Juneau Manager Rorie Watt, right, smile for a photo Friday afternoon during a ceremony held at the Juneau Police Station. (Clarise Larson / Juneau Empire)
Juneau’s deputy and interim police chief retires after 28 years

David Campbell honored for his service during a ceremony Friday afternoon.

Violinist/vocalist Chelsey Green, seen here with her Green Project ensemble in 2022, is scheduled to perform Oct. 4 and 5 during the Juneau Jazz and Classics Fall Music Festival. (Photo courtesy of Chelsey Green)
This fall’s Juneau Jazz and Classics offers the world on a string

Cellos and violins will be playing rock, folk, baroque, fusion and traditional at five-day festival.

(Clarise Larson / Juneau Empire File)
Police investigate ‘random’ drive-by pellet gun attack downtown

A person in a white SUV reportedly shot at two women Wednesday night.

(Michael Penn / Juneau Empire File)
Police calls for Wednesday, Sept. 27, 2023

This report contains public information from law enforcement and public safety agencies.

Derek Bos of Colorado smiles for a photo Thursday evening outside of City Hall. Bos is one of two finalists seeking the chief position at the Juneau Police Department. (Clarise Larson / Juneau Empire)
Chief finalist says building trust in schools and faith-based communities a priority

He addresses past controversial arrests of two school district administrators in Colorado.

The offices of the Alaska Permanent Fund Corp. are seen Monday, June 6, 2022, in Juneau. (Photo by James Brooks/Alaska Beacon)
Alaska Permanent Fund leaders discuss exemption from open-government law

Trustees considering ideas, including amending state Constitution, in hope of boosting fund’s value.

Clarise Larson / Juneau Empire
Visitors look at the Mendenhall Glacier near the Mendenhall Glacier Visitor Center in August.
Shutdown disruptions would be widespread in Juneau

What the looming federal shutdown could mean for the capital city.

Most Read